Union Pacific looks to Mexico as US coal demand falls: officials

Union Pacific said it is working with Mexican railroad Ferromex on possibly moving coal through the Port of Guaymas, about 240 miles from the US border.

As domestic US coal volumes continue to shrink, Union Pacific executives said they are closely watching terminal developments in Longview, Washington, and even exploring the potential of exporting coal through the Port of Guaymas in northwest Mexico.

Union Pacific CEO Jack Koraleski said that the railroad would benefit most from the Millennium Bulk Terminals project in Longview, a $600 million terminal capable of exporting 44 million mt/year.

But the US Environmental Protection Agency’s recent inquiry into the Morrow Pacific coal export project in Oregon is making Union Pacific wary of possible environmental restrictions as Millennium seeks a permit.